U.S. Junk-Bond Yields Drop Below 4% for the First Time Ever
- Investors are turning to risky debt in relentless yield hunt
- Risk appetite has cleared the way for PIK notes, CCC deals
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The average yield on U.S. junk bonds dropped below 4% for the first time ever as investors seeking a haven from ultra-low interest rates keep piling into an asset class historically known for its high yields.
The measure for the Bloomberg Barclays U.S. Corporate High-Yield index dipped to 3.96% on Monday evening, making it six straight sessions of declines.